This study delves into the roles of marketing, its interrelation with other functional units, comparison of marketing mix elements between Heinz and Nestle, and the development of a marketing plan for Heinz. It emphasizes the importance of customer-centric strategies and effective marketing tactics.
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Table of Contents Introduction:....................................................................................................................................3 Task 1:.............................................................................................................................................3 LO 1 Explanation on the roles of marketing how it interrelates with the other functional units of the organization...............................................................................................................................3 P1: Assessment of roles and responsibilities of marketing functions:............................................3 P2: Evaluation of relation of roles and responsibilities of marketing with organization:...............4 M1: Assessment of roles and responsibilities of marketing in relation to Heinz:...........................4 M2: Evaluation of significance of interrelationship between marketing and other functional units of Heinz:..........................................................................................................................................4 D1: Assessment of key elements of marketing functions and their relation with functional units of Heinz:..........................................................................................................................................5 Task 2:.............................................................................................................................................6 LO 2: Comparing the ways in which the organization uses the elements of marketing mix for achieving the overall business objectives:.......................................................................................6 P3: Comparing the ways in which Heinz and Nestle apply the marketing mix to their marketing plans for achieving the business objectives.....................................................................................6 M3: Evaluation on the different tactics used by Nestle and Heinz for demonstrating how business objectives are achieved:...................................................................................................................8 Task 3...............................................................................................................................................9 LO 3: Developing and evaluating a basic marketing plan:..............................................................9 P4: Evolution of marketing plan for Heinz:....................................................................................9 M4: Assessment of detailed marketing plan for Heinz:................................................................10 D2: Evaluation of strategic marketing plan:..................................................................................11 Conclusion:....................................................................................................................................11 References:....................................................................................................................................12 Page |2
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Introduction: The importance of marketing is enhancing considering the changing requirement of customers moreover, the inaccurate balance between demand and supply. Organizations need to show high credibility in order to grow and prosper in the marketplace in the context of marketing and advertisingofproductsorgoods.Thefollowingstudywouldhighlightthemarketing performance of Heinz along with the interrelationship between its elements and the impact of seven marketing P’s. Moreover, the study would also encompass the productive relationship between organizational goals and that of marketing objectives or targets. Thus, the efficiency of conducting a survey and implementing several strategies would also be highlighted. Task 1: LO 1 Explanation on the roles of marketing how it interrelates with the other functional units of the organization P1: Assessment of roles and responsibilities of marketing functions: Market functions are focused towards enhancing the reaching power of the organization along with standard earnings and greater retention of customers (Ferrell and Hartline, 2012). Following are the major role behind the incorporation of marketing functions: To create cost-effective market plan To bring improvement in the products throughout the development phase To utilize all the given platforms for advertising and promotions purpose To improve the relationship with common customers and that of suppliers To address customer queries in a more satisfying manner To perform effective research and come out with productive findings To perfectly mix marketing elements like product, price, promotion, etc To overcome competitors in terms of reaching customers and identifying market trends To incorporate flexibility in the planning department to perform as per the changing nature of marketplace Page |4
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P2: Evaluation of relation of roles and responsibilities of marketing with organization: The future of the organization in the current market environment is highly depended upon the quality of service and level of the customer base (Baker, 2014). While innovative technological tools could be implemented for the purpose of enhancing the quality of goods, proper marketing of services is required to attract and retain customers. A marketing plan could also enable the enterprise to gain competitive advantage and pressurized other companies fighting for the same buyer. Moreover, promoting is necessary to expand business and attract more clients and other suppliers. Thus, marketing is the second most priority of any retail enterprise after financing to achieve objectives and overcome contingencies. M1: Assessment of roles and responsibilities of marketing in relation to Heinz: Heinzisoneofthemostadvancedfoodprocessingcompanyneedsanidealstrategic environment to grow and become highly innovative organizations across the globe. The above- mentioned roles and responsibilities could improve the competitive character of the enterprise and win the trust of rational or loyal customers (Solomon, 2014). While the advertising would attract more food manufacturers across the UK, that of a marketing plan would enable the enterprise to move systematically in the marketplace. Moreover, social platforms could be utilized to aware of many clients and effective interpersonal skills employees could be recruited to address customer queries properly. Thus, market flexibility would enable the enterprise to maintainstabilityindifferentmarketconditionsandmaintainconsistencyintermsof profitability. M2: Evaluation of the significance of interrelationship between marketing and other functional units of Heinz: The functional areas of Heinz are listed below: Human resource: Through the implementation of effective advertising, more individuals would be attracted to participate and HR professionals would have better chances of recruiting talented professionals as per the necessity of the enterprise. Thus, the performance of each department would improve in this manner (Chaffey and Ellis-Chadwick, 2016). Page |5
Customer service: By utilizing marketing platforms like social media, it would become easy for the managers of Heinz to address customer queries and provide quick resolution to the same. Moreover, the survey could also be used to understand the actual requirements of the customers and perform accordingly to gain a competitive advantage over competitors or rivals. Sales: Due to the enhanced frequency of advertising, more customers would be attracted as a result of which the overall revenue of the enterprise would enhance in the marketplace (Kirtiş and Karahan, 2011). Finance: Marketing and promotions often increase the goodwill of the enterprise in the marketplace which further reduces the complexity of obtaining a loan and maintain the working capital to perform day to day operations. Apart from the functional units mentioned above, production and operation activities of Heinz would also be improved due to consistent feedback from the customers who are the real asset of the organization. D1: Assessment of key elements of marketing functions and their relation to functional units of Heinz: The key elements of marketing functions are majorly divided into four types such as product, promotion, price, and place. While product which is food processing service in the context of Heinz is the only resource to generate cash and survive in the marketplace (Fifield, 2012). Termination of food processing service could create a situation like liquidity, bankruptcy etc for the company and necessary actions should be implemented to improve the same. On the other hand, price contributes towards increasing the competitive character of the organization and win buyer from other big competitors or rivals. Price is very sensitive and charging reasonable rate is significant to improve and succeed in the marketplace. Moreover, Page |6
promotions are necessary to reach out to as many customers and the place is necessary to increase the level of profitability and reach a good level of demand among society. Task 2: LO 2: Comparing the ways in which the organization uses the elements of the marketing mix for achieving the overall business objectives: P3: Comparing the ways in which Heinz and Nestle apply the marketing mix to their marketing plans for achieving the business objectives The seven P’s of the marketing mix for Heinz are as under: Product: Nestle offers a wide range of products to its customers with almost over brands under its name. The products include milk, coffee, bottled water, infant foods, yogurt, cream, chocolates, and beverages. The product bag of Heinz is smaller when compared to that of Nestle (Sousa and Filipe Lages, 2011). Heinz aim product is tomato ketchup while diversifying into another product base such as salad cream, ready to serve soups, sauces, baby food, vinegar, mustard, gravies, and pasta sauce. Despite having a smaller kitty with respect to the product base, the products offered by Heinz are available in bottles and sachets in various sizes aimed to suit the needs of the individual customers just as in case of Nestle. Price: The pricing strategy used by Nestle is flexible which in one of the main reasons behind the global success of the company. In addition to this, the company lay additional stress on the quality of the products offered to its customers thereby, defining the higher prices of the company’s product in the target market (Kumar and Rajan, 2012). The pricing strategy varies from one product to another this, in turn, enables the company to maintain the product rates at a sustainable position in the target market. However, for most of the products of the company, the strategy used is competitive pricing strategy. The Company offers both bulk purchase discounts Page |7
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in the wholesale markets while at the same time, providing lower rate or economic rate products in the economy class driven market. The pricing policy adopted by Heinz is competitive pricing policy wherein, the company keeps the prices of the products close to the price range of the competitors’ products in the same brackets. The company also has a reasonable pricing policy wherein, the customers are offered a quality product at reasonable rates. These pricing policies enable Heinz to increase brand loyalty thereby, increasing the revenue for the company and thus, meeting the desired objectives (Lusch and Vargo, 2014). Place: Currently, Nestle operates in over 95 countries across the globe with the help of a very strong and efficient supply chain. The company has been efficient in maintaining the brand image in the market where it operates making it easier to expand to the neighboring regions. The products are made available to both the urban as well as the rural region. Like Nestle, Heinz is also an established brand in the food and beverage industry and has its presence in various countries across the globe (Moogan, 2011). The products of Heinz are manufactured on six continents while the company also has various research and development facilities in several countries. Like Nestle, the strong supply chain of Nestle enables the company to make the products available in the target market with ease. However, the Heinz products have a lower presence in the rural region as compared to the urban region and are the only area where both the companies differ. Promotion: The promotional strategies used by Nestle are very well planned and use both traditional as well as modern marketing techniques. However, with the increasing use of the internet, the additional stress is laid on the modern marketing techniques using the social media platforms and other electronic and print media. Like Nestle, the promotional strategy of Heinz is more inclined towards the modern marketing techniques due to the increased brand awareness and the lower cost implications (Papadopoulos and Heslop, 2014). Page |8
People: Both Nestle and Heinz are aware of the importance of People mix in the marketing process, therefore, both the companies invest an adequate amount of time in the training and development of the employeesandmakingthemequipped withnecessary skillsusefulfor positively influencing the market. Processes: Both Heinz and Nestle understand the importance of process mix and therefore, ensure that the sales representative of both the companies is able to provide relevant and supportive services to the customers or retailers or wholesalers with an object to create brand loyalty and increase business relationships with the other party (Walker and Mullins, 2011). Physical evidence: As in the words of (Yannopoulos, 2011), in the current business environment, the customers are more likely to be influenced by what they see and then assess their physical structure. Both Nestle and Heinz have been aware of the same, therefore, in order to influence the customers’ confidence, both the company’s managers have ensured a more conducive environment in order to attract customers and thereby, achieving the desired objectives as well. M3: Evaluation of the different tactics used by Nestle and Heinz for demonstrating how business objectives are achieved: Based on the assessment of the marketing mix of both Nestle and Heinz it can be said that majority of the tactics used by both the companies are similar to one another. For instance, both Nestle and Heinz are aware of the importance of people mix, physical evidence and process mix, therefore, have incorporated similar tactics to attract the customers while at the same time, retain the old ones. Moreover, in order to achieve the objectives relating to increased revenue and profit margins, both the companies use the modern marketing techniques as it helps them to reach a wide base of customers while at the same time, the cost implication of this tactic is lower as compared to the traditional one (Yannopoulos, 2011). Page |9
However, the pricing strategies for both the companies differ from one another. Heinz uses both competitive pricing as well as penetration pricing for its products while on the other hand, Nestle uses only competitive pricing. Heinz uses the penetration pricing strategy for entering the new market or introducing a new product in the market. However, both the company uses reasonable pricing strategy and value-based pricing tactic to define the products prices and its superior quality. Heinz, however, stresses more on the urban population while Nestle gives equal weight age to the rural as well as urban sector. Both the tactics are justified as Heinz has lower product base to offer the rural population extensive while Nestle products base has over 6000 brands to meet the rural population needs as well (Neti, 2011). Task 3 LO 3: Developing and evaluating a basic marketing plan: P4: Evolution of marketing plan for Heinz: Proper construction of marketing plan is necessary to grow and prosper in the marketplace and deal with the contingencies arising from significant sources. Further, the sense of flexibility could also improve the level of stability and elasticity in the overall working environment to overcome competitors and rivals. Heinz would be able to compete with other big organizations with the assistance of following a marketing plan. Survey: The marketing plan of Heinz should begin with the conduction of survey in order to incorporate the feedback from the customers and understand the areas which could improve the performance of the organization. The frequency of survey should increase if the competition in the market is tough and vice-versa (Neti, 2011). Social platforms: Use of social platforms for advertising purpose could improve the reaching power of Heinz and contribute towards gaining competitive advantage in the marketplace. The social platform is cost friendly and have huge expansion and reach towards the customers. Page |10
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Flexibility: Identification of market trend and performing accordingly is necessary to enhance profitability and fulfill the dream of market expansion. M4: Assessment of detailed marketing plan for Heinz: The above-mentioned marketing plan could improve the performance of Heinz: SWOT analysis: Implementation of SWOT analysis at regular intervals could enhance the level of opportunities and fulfill the gaps present in the current strategic environment of the enterprise. Market mix: The seven P’s should be properly mixed in order to create ideal marketing situation for Heinz and accomplish the respective goals or objectives. Managers should put more attention towards elements like price, product, place, etc (Borland and Lindgreen, 2013). Customer requirements: Requirements of customers should be accurately addressed in order to achieve new goals and overcome competitors or rivals in the same industry. Fulfilling the requirements of the customers is necessary to improve the performance and position of the organization and achieve respective financial and non-financial goals. Planning of portfolio: Identification of services gain more popularity among customers could enhance the revenue generation cycle of Heinz and overcome competitors or rivals. Portfolio planning could also reduce the level of risks or uncertainties and increase the credibility and reach the power of the organization (Lusch and Webster Jr, 2011). SMART goals: The objectives and targets of marketing should fall within the boundary line of SMART goals to proceed systematically and deal with contingencies in an accurate manner. Page |11
D2: Evaluation of strategic marketing plan: The strategic marketing plan needs to be constructed with the appropriate mixture of seven marketing P’s such as price, place, promotion, product, etc. The marketing objectives of Heinz are as follows: To enhance brand power To increase the level of revenue and sales To enhance the frequency of profitability To create cordial relationship with customers and other stakeholders To attract and retain more customers and clients While price would attract the price-sensitive customers, enhancing the quality of the products could retain customers for a longer period of time. Moreover, performing marketing activities inaccurate locations could increase the level of profitability and do promotion activities could enhance the reaching power of the enterprise (Lusch and Webster Jr, 2011). Conclusion: The study highlights the marketing significance in the current competitive environment to overcome competitors or rivals and attract customers from significant sources. Moreover, Heinz with the proper mixture of seven marketing P’s could win the trust of customers or buyers and deal with the contingencies and issues in best possible manner. Thus, conducting a survey and executing SWOT analysis could increase the frequency of opportunity and reduce threats accurately (Lusch and Webster Jr, 2011). Page |12
References: Baker, M.J., 2014.Marketing strategy and management. Palgrave Macmillan. Borland, H. and Lindgreen, A., 2013. Sustainability, epistemology, ecocentric business, and marketing strategy: Ideology, reality, and vision.Journal of Business Ethics,117(1), pp.173-187. Chaffey, D. and Ellis-Chadwick, F., 2016.Digital marketing. Pearson. Ferrell, O.C., and Hartline, M., 2012.Marketing strategy, text, and cases. Nelson Education. Fifield, P., 2012.Marketing strategy. Routledge. Kirtiş, A.K., and Karahan, F., 2011. To be or not to be in social media arena as the most cost- efficientmarketingstrategyaftertheglobalrecession.Procedia-SocialandBehavioral Sciences,24, pp.260-268. Kumar, V. and Rajan, B., 2012. Social coupons as a marketing strategy: a multifaceted perspective.Journal of the Academy of Marketing Science,40(1), pp.120-136. Lusch, R.F., and Vargo, S.L., 2014.The service-dominant logic of marketing: Dialog, debate, and directions. Routledge. Lusch, R.F. and Webster Jr, F.E., 2011. A stakeholder-unifying, co-creation philosophy for marketing.Journal of Macromarketing,31(2), pp.129-134. Moogan, Y.J., 2011. Can a higher education institution's marketing strategy improve the student- institution match?.International journal of educational management,25(6), pp.570-589. Neti, S., 2011. Social media and its role in marketing.International Journal of Enterprise Computing and Business Systems,1(2), pp.1-15. Papadopoulos,N.andHeslop,L.A.,2014.Product-countryimages:Impactandroleof international marketing. Routledge. Solomon, M.R., 2014.Consumer behavior: Buying, having and being(Vol. 10). Upper Saddle River, NJ: Prentice Hall. Page |13
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Sousa, C.M., and Filipe Lages, L., 2011. The PD scale: a measure of psychic distance and its impact on international marketing strategy.International Marketing Review,28(2), pp.201-222. Walker, O.C. and Mullins, J.W., 2011. Marketing strategy: a decision-focused approach. Yannopoulos, P., 2011. Impact of the Internet on marketing strategy formulation.International Journal of Business and Social Science,2(18). Page |14